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For: ApplicationDevelopment& DeliveryProfessionalsThe Forrester Wave : CRM SuitesFor Large Organizations, Q1 2015by Kate Leggett, March 25, 2015 Updated: March 27, 2015Key TakeawaysCRM Provides The Cornerstone Of A Great Customer ExperienceThe only source of competitive advantage is an obsession with understanding, delighting,connecting with, and serving customers. CRM is crucial to this success, but can only besuccessful if the foundations for sales, marketing, and service processes and technologyare solid.The CRM Vendor Landscape Is Bloated, So Understand Core Focus AreasThe landscape of CRM solutions has matured and converged as a result of merger andacquisition activities. These vendors offer solutions replete with features and functions.Every vendor can just about tick every box. CRM leaders must understand the corefocus areas and value proposition of each vendor to make the right buying choices.Different Leaders Have Specific StrengthsSalesforce, SAP CRM, and Oracle Siebel battle for the lead, with Microsoft andPegasystems hot on their heels due to their breadth of capabilities and mature businesspractices. Yet, change in this space will continue as vendors fill in gaps with acquisitions,or redefine their CRM portfolios.Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USATel: 1 617.613.6000 Fax: 1 617.613.5000 www.forrester.com

For Application Development & Delivery ProfessionalsMarch 25, 2015Updated: March 27, 2015The Forrester Wave : CRM Suites For LargeOrganizations, Q1 2015Salesforce, SAP, Oracle, And Microsoft Lead A Mature Field OfVendorsby Kate Leggettwith Stephen Powers, Fraser Tibbetts, and Arelai EphraimWhy Read This ReportIn this Forrester Wave evaluation of customer relationship management (CRM) suites for enterpriseorganizations, we identified the nine most significant CRM suites solutions — Infor CRM (formerlyknown as SalesLogix), Microsoft Dynamics CRM, NetSuite, Oracle Siebel CRM, Pegasystems, Salesforce,SAP CRM, SAP Cloud for Customer, and SugarCRM — and researched, analyzed, and scored them. Thisreport details our findings in order to help application development and delivery (AD&D) professionalssupporting CRM operations select the right partner for their customer engagement initiatives.Table Of ContentsNotes & Resources2 Modern CRM Supports Customers In TheirEnd-To-End JourneysForrester conducted vendor surveyevaluations in November 2014 and evaluated10 CRM solutions worthy of consideration bylarge organizations. We also surveyed vendorcustomers.3 The CRM Market Is On The Cusp OfSignificant Change4 More Is Not Better In The CRM Market —Sometimes It Is Worse8 CRM Evaluation Overview10 The Results: Salesforce, SAP, Oracle, AndMicrosoft Dominate12 Vendor Profiles18 Supplemental MaterialRelated Research DocumentsNavigate The Future Of CRM In 2015January 22, 2015Transform Customer Processes And SystemsTo Improve ExperiencesJanuary 13, 2014TechRadar For AD&D Pros: The ExtendedCRM Technology Ecosystem, Q1 2013January 29, 2013 2015, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best availableresources. Opinions reflect judgment at the time and are subject to change. Forrester , Technographics , Forrester Wave, RoleView, TechRadar,and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Topurchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com.

For Application Development & Delivery Professionals2The Forrester Wave : CRM Suites For Large Organizations, Q1 2015Modern CRM Supports Customers In Their End-To-End JourneysForrester defines CRM as:The business processes and supporting technologies that support the key activities of targeting,acquiring, retaining, understanding, and collaborating with customers.Companies leverage CRM to provide operational efficiencies for sales, marketing, and customerservice organizations when interacting with customers — an “inside-out” approach. Users leverageCRM to aggregate and analyze opportunity and customer data, as well as automate workflows tooptimize customer engagement processes. To quantify CRM’s return on investment, companiesexamine operational metrics such as reduced marketing costs, increased revenues from salespeople,decreased sale cycle times, better pipeline visibility, decreased service resolution times, and more.As a result, interest in deploying CRM technologies continues. Our data shows that almosttwo-thirds of technology decision-makers at enterprise organizations indicate that they haveimplemented a subset of CRM capabilities.1 Specifically, 41% have already implemented acustomer service and support (CSS) solution; 34% have implemented a sales force automation(SFA) application; and 26% have implemented marketing automation — and many are planningto upgrade their tool sets. An additional 30%, 31%, and 28% have plans to adopt a CSS, SFA, andmarketing automation solution within the next few years, respectively (see Figure 1).Today, forward-thinking companies build on these internal operational efficiencies and extend thepower of CRM to better support customers through their end-to-end engagement journey. Thisgarners their satisfaction and long-term loyalty. Good customer experiences correlate to customerloyalty, and loyal customers are more willing to consider another purchase from a company, are lesslikely to switch business to a competitor, and are more likely to recommend. Our models estimatethat the revenue impact from a 10-percentage-point improvement in a company’s performance, asmeasured by Forrester’s Customer Experience Index (CX Index) score, could exceed 1 billion.2 2015, Forrester Research, Inc. Reproduction ProhibitedMarch 25, 2015 Updated: March 27, 2015

For Application Development & Delivery Professionals3The Forrester Wave : CRM Suites For Large Organizations, Q1 2015Figure 1 Many Decision-Makers’ Enterprises Have Already Implemented A CRM Solution“What are your firm’s plans to adopt the following packaged/vendor-built(not custom) business applications?”(Enterprise [1,000 or more employees])AlreadyimplementedPlanning toimplementMarketing automationCustomer service and support (CSS)Sales force automation (SFA)Interested butno plans26%Not interested28%41%34%18%Don’t know21% 7%30% 14% 11%31% 12%19%4%5%Base: 1,087 global technology decision-makers (1,000 employees)Source: Forrester’s Business Technographics Global Software Survey, 2014119104Source: Forrester Research, Inc. Unauthorized reproduction or distribution prohibited.The CRM Market Is On The Cusp Of Significant ChangeThe CRM vendor space is mature. Yet there have been many changes in the last five years and morechange is likely to continue. Two driving factors will accelerate these changes.Big Fish Eat Little Fish, And Each Bite Broadens The Reach Of The Big FishThe CRM market has consolidated in the last five years. For example, Oracle, focused on providingconsistent end-to-end customer experiences across touchpoints, has made numerous acquisitionsto round out its customer experience portfolio.3 SAP, like Oracle, provides consistent end-to-endcustomer experiences via its breadth of products and has made a few key acquisitions to round outits capabilities.4 Salesforce made a series of moves to round out the service cloud.5 It has used thissame tactic to broaden its CRM footprint with the notable acquisition of ExactTarget for businessto-company (B2C) marketing automation (2013).Other acquisitions of note include: Microsoft’s acquisition of Netbreeze (2013) for social listeningand Parature (2014), which helps Microsoft Dynamics add knowledge management and chatcapabilities; Pegasystems acquisition of Chordiant Software (2010) for process-centric CRM andAntenna Software (2013) for mobile development; and Infor’s acquisition of SalesLogix (2014) fromSwiftpage, which had acquired it from the Sage Group (2013). 2015, Forrester Research, Inc. Reproduction ProhibitedMarch 25, 2015 Updated: March 27, 2015

For Application Development & Delivery Professionals4The Forrester Wave : CRM Suites For Large Organizations, Q1 2015Vendors Offering Point Solutions Go After The Enterprise PlayersThese large CRM vendors increasingly offer broader and deeper capabilities which bloat their footprintand increase their complexity with features that many users can’t leverage. At the same time, new pointsolution vendors are popping up at an unprecedented rate and are delivering modern interfaces andmobile-first strategies that address specific business problems such as sales performance management,lead to revenue management, and digital customer experience. You just have to look at the entry list forthe yearly CRM Idol competition to get a feel for the range of these offerings.6 Of course, these vendorshave a long way to go to prove their capabilities in an enterprise setting.Compounding this is the reality that most companies make technology purchasing decisions inorganizational silos — a trend accentuated by the rise of software-as-a-service (SaaS) CRM. Thistrend may herald the end of the bloated CRM category. Forrester predicts that CRM will fragmentto better support end-to-end business processes.We will see a deeper alignment between sales and marketing CRM to support lead-to-revenuemanagement processes. Customer service CRM solutions will converge with workforceoptimization, queuing, and routing technologies to better support the end customer and moreeffectively manage agent workloads.7 Keep an eye on this space, and choose vendors carefully as theCRM landscape is ripe for change.More Is Not Better In The CRM Market — Sometimes It Is WorseEach of the leading vendors in this mature market offers a checklist of features and functions.Remember that more is not better; many times more is just more. In fact, when you don’t needor can’t use extra features, more is sometimes worse. CRM buyers must understand the marketsegmentation in order focus in on the right category of vendor that is the right size for their needs.Ask What Size Organization Each Vendor TargetsEven with market consolidation, CRM solutions fall into four primary groups to choose from,although the distinctions between these categories have become less pronounced over the past threeyears (see Figure 2): CRM suites for large organizations. CRM vendors focused on large organizations —organizations with 1,000 or more employees — typically offer a full range of functionalitysupporting multiple languages and geographies. Many vendors offer deeply vertical solutions,and have pre- and post-sale company resources dedicated to their support. Vendors in thiscategory also target midsize organizations, offering prepackaged versions of their solutions withmore affordable price tags. The leading vendors in this category are highlighted in this report. 2015, Forrester Research, Inc. Reproduction ProhibitedMarch 25, 2015 Updated: March 27, 2015